If you’re not already rich, the race for early retirement can feel like it’s tarnished with victims. Give this up, give this up – just like the only way to retire before 65 is to suffer now.
Sure, you want to be able to enjoy early retirement, and that means you have enough money to do it. But now you also want to live your life in a way that you enjoy it.
A study by annuity.com found that people would be willing to sacrifice some of life’s greatest comforts in order to achieve FIRE (financial independence, early retirement):
The study shows that 20% of people would give up having children, 27% would live without pets, and 28% would stop eating out just to celebrate their retirement party a decade or two early. Some people would even move into a tiny home or sell their car!
But we know there are better options. You don’t have to go without the things you love to retire to when you want to. Here are a few things people recommend giving up in order to speed up their retirement – and why we think you shouldn’t.
1. What they say: “Give up your vehicle”
Between car payments, insurance, and repairs, a car can be a huge expense. And people who have an eye on early retirement to do tend towards a minimalist lifestyle, so getting rid of your vehicle can be tempting.
But unless you live in a city that’s easy to get to by bike or has good public transport, you’ll need to make your own way from A to B. So instead of selling your lease or letting it expire, here are a few tips to cut your car costs:
- Buy a used car. Even if the average interest rate on financing a used car is higher than that of a new car or a lease, you can financially save thousands of dollars over the course of a few years.
- Reduce your car insurance costs. By reviewing quotes every six months, you can save an average of $ 489 per year on your insurance payments. A website called Insurance.com makes it super easy to compare car insurance prices. All you have to do is enter your zip code and age and your options will be displayed.
2. What they say: “Give up online shopping”
Shopping online can be an account reliever – it’s so easy to add things to your cart, click a few buttons, and wait for your package to arrive a few days later. And if you’re looking to save a lot of money over the next decade or two, shopping online can be a huge hurdle.
But here’s the thing – you can still shop online. You just have to be smart: never overpay and get cash rewards.
That’s it free service do for you.
Just add it to your browser for free *, and before you check out, it will check other sites including Walmart, eBay, and others to see if your item is on sale for a cheaper price. You can also get coupon codes, set up price drop notifications, and even see the item’s price history.
For example, let’s say you buy a new TV and assume you’ve found the best price. Here you will get a pop-up letting you know whether this particular television is available for a cheaper price elsewhere. If coupon codes are available, these will also be automatically applied to your order.
Last year, this saved people $ 160 million.
You can get started with just a few clicks See if you are overpaying online.
3. What They Say: “Give Up Eating Out”
While the world was in quarantine, we learned to be more self-sufficient in the kitchen, and many of us saw a significant decrease in our restaurant (take-out, maybe not so much) spending. So it’s understandable that 28% of people say they would give it up altogether in order to meet their early retirement goals.
But for the other 72% who like to go to restaurants and order deliveries, financial independence is not off the table. There are just a few strategic steps to take so that you can continue to support your favorite eateries and give your family a break from all the dishes.
Look for discounts first: you can find them on Groupon or with an AAA discount. You can even buy discounted gift cards on sites like Restaurant.com. If you have kids, check out restaurants where they can eat for free on certain days of the week.
Next, make sure you get cash back (or generally swipe your debit card) every time you go out to eat.
If you don’t use Aspiration’s debit card, you are missing out on extra cash. And who doesn’t want extra money now?
Yes. A debit card called aspiration gives you up to 5% back every time you swipe.
Do you need to buy groceries? Extra money.
Do you need to fill up the tank? Bam. Even more extra money.
You wanted to buy these things anyway – why don’t you get this extra money?
Give your Email address here, and link your bank account to see how much extra cash you can get with your free Aspiration account. And don’t worry. Your money is FDIC insured and is subject to military encryption. This is nerd talk for “that’s perfectly safe”.
4. What they say: “Give up more living space”
The tiny house – or small space – lifestyle has become increasingly popular with retirees. It is cheaper to own, likely to not involve a mortgage, and also less expensive to run.
In fact, 17% of respondents said they would live in less than 700 square feet if that meant they could retire early. This may be fine for a single person, but for couples or families – it just might not be enough.
Instead, you could keep the space you love and find ways to save money and make money from it:
Stop paying $ 690 on home insurance
Fortunately, an insurance company called Political genius makes it easy to find out how much you are overpaying. It will find you cheaper policies and special discounts in just a few minutes.
In fact, it saves users an average of $ 690 per year – or $ 57.50 per month. It will even help you part with your old insurance company. (You can cancel your policy at any time and your company should issue you a refund.)
And just because you save money doesn’t mean you save on coverage. Policygenius makes sure you have what you need.
Just answer a few questions about your home to see how much money you are wasting.
Earn up to $ 300 a month from your empty garage
Additional rooms in your home don’t have to be left empty. You can rent unused storage space – your shed or garage – to your neighbors who need it. With a website and app called Neighbor, you can make up to $ 300 a month on your terms. Use this calculator to See how much your available space is worth.
Kari Faber is a writer for The Penny Hoarder.
* Capital One Shopping will compensate us if you receive the extension using the links provided.
This article originally appeared on www.thepennyhoarder.com